2025 is upon us. It’s going to be quite an eventful year in Switzerland, with changes to everything from salaries and pensions to transport. To help prepare you for another year in the alpine nation, here are all the major changes coming in the next 12 months.
Working and money in Switzerland: Changes to expect in 2025
It's set to be a big year when it comes to finance, money and working in Switzerland. Here’s what you should expect in 2025:
2025 minimum wage and salaries Switzerland
From the beginning of 2025, the minimum wage will increase in four of the five Swiss cantons which have implemented the policy. This is to help better align wages with the rising cost of living.
Geneva will increase its minimum wage from 24,32 to 24,48 francs an hour, Basel will see its minimum wage rise from 21 to 22 francs, while Ticino will raise its minimum wage to between 20 and 20,50 francs. Minimum wage workers in Neuchâtel will see their pay packets rise from 21 to 21,31 francs an hour, while cantonal authorities in Jura already raised the metric from 20,6 to 21,4 francs an hour in July 2024.
For other salaries in Switzerland, studies by UBS and the KOF Swiss Economic Institute have predicted that wages will rise by between 1,6 and 1,4 percent in 2025. While this is less than in 2024, inflation is expected to fall to near zero in the next year, meaning real wages will rise faster.
VAT-free allowance on cross-border shopping halved
In a bid to clamp down on the practice, the Swiss government will lower the VAT-free limit on cross-border shopping in 2025. From January 1, residents will only be able to bring 150 francs worth of shopping across the border before having to pay Swiss value-added tax, down from 300 francs per person in 2024.
Higher family allowance
For the first time since the benefit came into force in 2009, the family allowance in Switzerland is set to be increased. The 7,1 percent rise in 2025 will require all Swiss cantons to offer each family a monthly allowance of at least 215 francs per child, rising to 268 francs per month if said dependant child is in further education.
Rules for cross-border workers
2025 will also see new rules imposed on cross-border workers who work from home. Strict limits will now be enacted on the percentage of working hours worked at home before cross-border employees have to pay local taxes. These thresholds vary by country, ranging from 25 to 40 percent of weekly hours.
Maximum interest rates on Swiss loans
To help better reflect near-record low interest rates in Switzerland, the government will be reducing the maximum interest rates allowed on consumer loans. From January, the maximum interest rate permitted on bank and cash loans will be cut from 12 to 11 percent. The maximum interest rate on overdrafts will also fall, from 14 to 13 percent.
Lower VAT on menstrual products in Switzerland
Thanks to an approved proposal from parliament, feminine hygiene and menstrual products in Switzerland will be made cheaper in 2025, as they will be subject to the reduced rate of VAT. These products will now be charged a 2,5 percent rate, rather than 7,7 percent.
Higher tax on some tobacco products
Tobacco for rolled cigarettes, cigars and cigarillos will be more expensive in 2025, following a rise in the tobacco tax. Rolling tobacco, heated tobacco products (like shisha) and snus will be around 40 rappen (centime) more expensive per pack. Pre-rolled cigarettes will not be affected by the rise.
Changes to Swiss pensions in 2025
If you’ve reached your golden years in Switzerland, here’s what changes you can expect in the quarter-century year:
Increases in Swiss first-pillar pensions (AHV / OASI)
In January, first-pillar pension (AHV / OASI) and disability insurance payments will increase by 2,9 percent. The minimum pension for a single person will rise from 1.225 to 1.260 francs a month, up to a maximum of 2.520 francs. In addition, it has now been confirmed that the 13th month of AHV pension will be rolled out in 2026.
Financial contributions to third-pillar pensions
From 2025, it will also be possible to “top-up” your private third-pillar pension to account for the time you were working abroad, or in Switzerland before setting up the plan. This promises to boost pension pots significantly and provide a great way to reduce your tax bill as third pillar contributions are tax deductible.
For more information about the scheme, check out our guide to the third-pillar pension reforms in Switzerland. In addition, the maximum financial contribution that is possible for a 3a pillar pension will rise from 7.056 to 7.258 francs per person per year in 2025.
Women's retirement age in Switzerland begins to rise
At the beginning of the year, Switzerland will begin the process of raising the retirement age for women to equal that of men at 65 years old, following a successful referendum in September 2022. The retirement age will be gradually increased over time, reaching 65 by 2028.
Changes to healthcare in Switzerland
Leaving retirement behind, there are a few changes to medical care in Switzerland that have to be kept in mind:
Increase in health insurance costs
From January, health insurance providers in Switzerland will begin their policies for 2025. On average, premiums are expected to rise by 6 percent compared to last year, adding to the previous hikes in 2023 and 2024.
There is some financial relief on the horizon though: in November 2024, insurers and healthcare providers committed to limit price rises to 1 percentage point per year from 2026. Whether this will be successful remains to be seen.
Switching from standard models of insurance made easier
If you can’t wait for the switching period in September, from January those on the “standard model” of basic health insurance will be able to switch to an alternative plan with the same provider at any time of year. This will allow policyholders to switch to cheaper models of insurance, and change their deductible.
However, those already on cheaper models of insurance (family doctor, HMO, Telmed, etc) will still have to wait until the end of the year. It is also not possible to switch between providers.
Swiss transport in 2025
Many changes are coming down the tracks when it comes to transport in Switzerland:
Free public transport in Geneva
After a litany of court appeals, political hijinks and debates, it has now been confirmed that some young people in Geneva will be given free public transport from 2025. From January 1, people aged six to 24 resident in Geneva, and those who go to school or university in the canton, will be granted free transport in the Zone 10 UNIRESO section of the Transport Public Genevois (TPG) network.
However, only those still in education or with a low income will be given the benefit. In addition, those who claim Swiss pensions or disability insurance will be given a 50 percent discount on all subscriptions offered by TPG.
Tighter noise regulations for cars
2025 will see Switzerland tighten noise regulations for drivers. It is now expressly forbidden to cause loud noises using exhausts, with Swiss police authorised to issue fines of up to 10.000 francs. New motorbikes and vehicles registered in Switzerland will also be subject to stricter noise regulations.
Finally, existing fines - such as for leaving engines running without a reason - will be increased from 60 to 80 francs per offence.
Automated driving on Swiss roads
The Swiss government will also be relaxing the rules around autonomous driving. From the spring, those with cars equipped with an automatic driving function (like Tesla’s autopilot) will be able to let go of the steering wheel and not have to monitor traffic constantly.
Swiss cantons will also be allowed to designate roads and parking garages as testing areas for fully driverless cars. Already, Canton Zurich, Swiss Federal Railways (SBB) and Zurich Airport have announced that they will be testing the technology.
Other changes coming to Switzerland in 2025
With taxes, salaries, pensions and transport out of the way, here are some other important things happening in Switzerland in 2025:
Immigration limit lifted on Croatian nationals
In 2023 and 2024, the government limited the number of Croatian nationals able to claim residence permits in Switzerland, due to the high levels of migration seen since the country joined the European Union in 2013. This totalled around 2.200 permits a year.
As federal authorities are only able to impose this limit for a maximum of two years, it will no longer apply from 2025, meaning all Croatian nationals can freely move to the alpine nation to fill jobs and look for work.
Burqa ban in Switzerland
After years of debate, Switzerland will impose its ban on face coverings in 2025, more colloquially known as the Burqa ban. From January 1, it will no longer be possible to wear face coverings in public places, with those who violate the rule facing fines of up to 1.000 francs. This applies not only to religious face veils but also to coverings worn by football hooligans and rioters.
However, some exceptions to the rule remain. Face coverings are still allowed in places of worship, during Fasnacht or Carnival, to protect against the cold and to protect health. Police are also required to allow face coverings if they are part of exercising freedom of expression or assembly.
Underage marriage protections extended
From 2025, Switzerland will expand protections and restrictions imposed on “underage marriage” - those who get married before the age of 18. In future, Swiss courts will be able to declare underage marriages conducted abroad invalid, until the married person reaches the age of 25.
Marriages abroad between minors will also no longer be recognised in Switzerland if at least one person of the couple was a resident of the alpine nation at the time.
Net zero targets and CO2 Law
Following its approval at a referendum in June 2023, Switzerland will bring its Climate Protection Act into force in 2025. This solidifies the country’s commitment to net zero carbon emissions by 2050, and aims to reduce environmental damage and boost supplies of renewable energy. In practice, the programme amounts to 2 billion francs in financial incentives over 10 years.
The new CO2 Law will also be imposed in the new year, which aims to reduce carbon emissions by half compared to 1990 levels by 2030. 4,1 billion francs will be spent over five years, mainly on incentives and investments in green technology.
Referendums and politics in Switzerland
Looking ahead, the political calendar in Switzerland for 2025 will see possible federal referendums on February 9, May 18, September 28 and November 28. This year, the President of Switzerland will be Karin Keller-Sutter (FDP), with Guy Parmelin (SVP) as Vice President.
Stay tuned to IamExpat for more updates on the referendums, and how they will impact internationals!
Happy New Year from IamExpat!
Whatever you find yourself doing in 2025, we hope you have an auspicious and peaceful year!
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